Canada GDP Numbers: What Borrowers Should Know
Much like the global economic landscape, Canada’s economy is constantly in flux. Gross Domestic Product (GDP) serves as a reliable indicator, providing insights and data into the economic health and prospects of the Canadian economy.
The most recent figures indicate that GDP fell 0.1% in March, after a 0.2% increase in February. The quarterly report, released on May 29th, revealed that GDP was essentially unchanged in the first quarter of 2026. This post provides a deeper understanding of Statistics Canada’s latest data and its implications for borrowers in the Canadian market.
Key Takeaways
- The latest GDP numbers show the Canadian economy grew slightly in January.
- In 2025, real GDP grew 1.9%.
- Preliminary estimates indicate the economy will grow 0.4% in April.
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Latest GDP Numbers in Canada
Gross domestic product (GDP) measures Canada’s economic activity based on the total value of all goods and services produced in Canada over a specific period. Dividing total GDP by population yields the average level of economic activity per person, known as GDP per capita.
When tracked over many years, GDP can show whether Canada’s economy is growing or contracting. When GDP rises, it is a sign of good economic health. Meanwhile, contracting GDP indicates that Canada is not operating at full capacity and may be heading into, or already in, an economic recession.
Statistics Canada reported that the Canadian economy declined 0.1% in March, after 0.2% growth in February.
Sectors that saw contractions include:
- Mining, quarrying, and oil and gas extraction fell 2.1%.
- The construction sector declined 0.6% following February’s 1.5% decline.
- Retail trade was down 0.6%, partially offsetting the back-to-back monthly growth in January and February.
Sectors that saw gains include:
- The wholesale trade sector increased 1.4%, marking the largest back-to-back monthly growth in over 4 years.
- The public sector increased by 0.1%, driven by growth in public administration.
- Arts, entertainment and recreation grew 6.9%, led by a rebound in spectator sports.
GDP First Quarter of 2026
Statistics Canada’s Q1 GDP data recorded no growth following a 0.2% decline in Q4 2025. This decline was primarily due to higher imports of goods, particularly gold, which were offset by accumulations of business inventories.
Imports grew 2.9%, with approximately half of the increase attributable to intermediate metal products and waste and scrap metal, both of which were driven by gold imports. Exports were down 0.1%, led by fewer exports of passenger cars and light trucks, which have been affected by US tariffs.
Canada’s Economy Declined 0.1% in March, With 0.4% Growth Projected for April
March’s GDP declined 0.1%, with 8 of 20 industrial sectors contracting. According to Statistics Canada’s preliminary estimate for April, GDP is expected to grow 0.4%. This estimate is based on increases in mining, quarrying, and oil and gas extraction, manufacturing and transportation and warehousing, offset by declines in agriculture, forestry, fishing and hunting.
Housing Investment Declines
Residential investment, a key driver of the Canadian economy, fell in Q1. Business investment in residential structures was down 2.0% following a 2.4% decline in Q4 2025. The Q1 decline was driven by a 9.9% decline in resale housing activity (ownership transfer costs). New residential construction declined 0.1%, led by decreased absorptions, which indicates sales of completed units.
Real Estate Rental and Leasing vs. Home Sales
In Q1, continued weakness in resale housing activity led to a decline in business investment in residential structures. Meanwhile, March saw a slight decline in the real estate and rental and leasing sector. Rents continued to decline, with the national average rent falling 4.7% in May, led by declines in Vancouver and Toronto.
Household Spending Increases
Household spending rose 0.4% in Q1 after a 0.7% increase in Q4 2025. This growth was led by higher spending on financial services and food. However, fewer Canadians are travelling abroad or purchasing new vehicles, which moderated growth in household consumption expenditures.
Frequently Asked Questions (FAQ) About the Canadian Gross Domestic Product (GDP)
What is GDP?
Gross Domestic Product (GDP) measures Canada’s total economic output over a specific period. It represents the monetary value of all finished goods and services produced domestically by Canadian businesses.
What is the GDP of Canada, and why is it important?
As of Q1 2026, Canada’s GDP was relatively unchanged, with GDP declining 0.036%, indicating economic contraction. GDP is a key indicator of whether our economy is performing well or showing signs of a recession. A recession can be determined by two consecutive quarters of decline in real GDP.
What are the major industries in Canada?
Canada has a diverse economy, with key industries including natural resources (such as oil, mining, and forestry), manufacturing, the services sector (including real estate, education, and health), and, increasingly, technology and innovation.
Final Thoughts
The latest GDP numbers paint a complex picture of the Canadian economy. With the economy reacting daily to interest rates, this may be an opportune time to prepare your finances if you are looking to purchase a home or renew or refinance your mortgage.
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